Do competitor ads impression on Google when you search for your own branded terms?
If they do, your competitors are bidding on your branded terms in Google Ads.
They do this even though they’re probably paying more per click (relative to their own brand name) and getting lower quality scores and poor CTRs (clickthrough rates) in return.
So why do they do it?
They do it because this strategy can raise awareness of their brand among your prospective buyers. If these prospects click on the competitor ads, the competitor can get more interaction and engagement on their website.
It can lead to the prospect converting in some way, such as completing a lead form or requesting a demo.
And ultimately, it can even result in a sale — a sale that could have potentially gone your way.
In short, the benefits of bidding on competitor-branded keywords can outweigh the costs.
Is bidding on competitor keywords allowed?
While this strategy can be effective, it feels shady to some advertisers. They may also worry about starting a bidding war. At the very least, seeing competitor ads show up for terms closely associated with your brand can be annoying.
However, Google permits this strategy under their policies. Your competitors can bid on your brand but cannot include it within their ad messaging.
Even so, it’s a strategy that some of our clients don’t want to engage with.
Fortunately, you have other options.
Finding new prospects with Demand Gen campaigns
If bidding on competitor-branded keywords is out of your comfort zone, Demand Gen campaigns, with their ability to target lookalike segments, provide a powerful alternative.
Lookalike segments are built from your first-party customer data (i.e. a customer list). You upload your list to Google Ads, and Google analyzes it. It then finds new potential customers across the Web who are similar to those on your list.
You can choose where your ad placements will occur, such as YouTube, Discover, Gmail, and vertical ads on Shorts.
Jyll Saskin Gales does a great job of explaining lookalike segments in this article in Search Engine Land.
Two cool tips for targeting competitors more effectively
Since we’re on the topic of competitors, here are a couple more tips in that department.
Targeting competitor URLs
A powerful way to reach potential customers is to create a custom audience segment that targets competitor URLs. Instead of segmenting your audience by their interests or behavior, you segment them by the websites they browse.
This approach can be a highly effective tactic in B2B Google Ads management, allowing you to connect with potential buyers who are already exploring solutions in your industry.
Gathering competitor intelligence with Dynamic Search Ads
Since we’re on the topic of competitors, Navah Hopkins recently posted on LinkedIn a cool way to gather competitor intelligence through Dynamic Search Ads.
This strategy can provide valuable insights into your competitors—helping you refine your campaigns and stay ahead of the competition.
There’s more than one way to compete via Google Ads
While bidding on competitor-branded keywords is tempting, it’s not the only route to success.
Exploring alternatives like Demand Gen campaigns, targeting competitor URLs, and leveraging Dynamic Search Ads to gain competitor intelligence can help you engage potential customers—without the queasy feeling that may accompany a competitive bidding strategy.